Salter Manufacturing Company produces inventory in a highly automated assembly plant in Fall River, Massachusetts. The automated system is in its first year of operation and management is still unsure of the best way to estimate the overhead costs of operations for budgetary purposes. For the first six months of operations, the following data were collected: Machine-hours Kilowatt-hours Total Overhead Costs January 4,560 5,424,000 $405,600 February 4,380 5,208,000 404,160 March 4,680 5,400,000 407,040 April 3,960 5,148,000 404,160 May 3,900 5,040,000 391,200 June 3,720 4,944,000 384,000 Required: a. Use the high-low method to determine the estimating cost function with machine-hours as the cost driver. b. Use the high-low method to determine the estimating cost function with kilowatt-hours as the cost driver. c. For July, the company ran the machines for 4,000 hours and used 4,550,000 kilowatt-hours of power. The overhead costs totaled $365,000. Which cost driver was the best predictor for July
Answers
Answer:
a. Total overhead = $294,720 + $24 × machine hours
b. Total overhead = $137,040 + $0.05 × Kilowatt-hours
c. The kilowatt-hours was the best predictor for July
Explanation:
High low method is used to separate the variable cost and fixed costs elements in a Semi-Variable Cost item.
machine-hours as cost driver.
First find the 2 points : the High and the Low
High Point : March
Machine-hours = 4,680
Total Overhead = $ 407,040
Low Point : June
Machine-hours = 3,720
Total Overhead = $ 384,000
Next find the Difference in the overhead cost and the cost driver of the 2 points
Overheads = $23,040
Machine-hours = 960
Find the Variable cost element
Variable cost = difference in overhead / difference in cost driver
= $23,040 / 960
= $24
Find the Fixed Cost Element.
Fixed Cost = Total Overhead - Variable Overhead
selecting the high point, this will be :
= $ 407,040 - (4,680 × $24)
= $294,720
Determine the Cost function
Total overhead = $294,720 + $24 × machine hours
machine-hours as cost driver.
First find the 2 points : the High and the Low
High Point : March
Kilowatt-hours = 5,400,000
Total Overhead = $ 407,040
Low Point : June
Kilowatt-hours = 4,944,000
Total Overhead = $ 384,000
Next find the Difference in the overhead cost and the cost driver of the 2 points
Overheads = $23,040
Kilowatt-hours = 456,000
Find the Variable cost element
Variable cost = difference in overhead / difference in cost driver
= $23,040 / 456,000
= $0.05
Find the Fixed Cost Element.
Fixed Cost = Total Overhead - Variable Overhead
selecting the high point, this will be :
= $ 407,040 - (5,400,000 × $0.05)
= $137,040
Determine the Cost function
Total overhead = $137,040 + $0.05 × Kilowatt-hours
Apply the machine hours for july
Total overhead = $294,720 + $24 × machine hours
= $294,720 + $24 × 4,000
= $390,720
Apply kilowatt-hours for july
Total overhead = $137,040 + $0.05 × Kilowatt-hours
= $137,040 + $0.05 × 4,550,000
= $364,540
Conclusion :
The kilowatt-hours was the best predictor for July
Related Questions
11. Assess Ford’s and GM’s actions with respect
to SUV rollovers. Have the auto-makers met
their moral obligation to consumers, or have
they acted wrongly by not doing more to
increase SUV safety? Should they be held
either morally or legally responsible for
deaths from roll-overs that would not have
occurred in other vehicles? What should
automakers do to increase SUV safety?
Answers
We exhibit a fair sense of justice and acknowledge the individual rights of each community member in accordance with rights and freedoms. We will attempt to be transparent about all facets of the goods or services we provide, use only credible testimonials, and make truthful statements to our clients.
What moral dilemma does Ford's situation present?Before the vehicle hit the market, Ford was aware of the issue with the gasoline tank design. Another moral dilemma is the fact that Ford refused to issue a recall even after becoming aware of the rear-end crashes and the fatal explosions that could have been avoided. The first full recall wasn't started until June 1978.
A valid tool is cost-benefit analysis, which seeks to maximize profit at the lowest possible cost. To sacrifice human life in order to cover cheaper production costs is inexcusable, though.
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Which best describes how consumers may benefit from specialization?
Consumers can only purchase high-quality goods.
Consumers have more price options.
O Consumers receive more sale offers.
O Consumers find products at lower prices.
Answers
In specialization a company have produced the product at different price levels. Consumers have more price options.
What is consumer?A consumer is a person who purchases the goods and or services from the business and is also the ultimate user of the products or services. In specialization the company produces a certain product at many different levels by which they have many price options available which vary according to their customization and quality that can be offered to the consumers and hence the customer can purchase different types of a single product from a single company or Brand.
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Which of the following is a policy instrument?
Group of answer choices
Taxes
Government expenditure
Money supply
Answers
Among the given options, taxes, government expenditure, and money supply are all examples of policy instruments.
Policy instruments refer to the tools or mechanisms used by governments or central banks to implement and influence economic policies.
Taxes: Taxes are a common policy instrument used by governments to collect revenue and influence economic behavior. By adjusting tax rates or introducing new taxes, governments can incentivize or discourage certain activities, redistribute income, or stimulate economic growth.
Government expenditure: Government expenditure is another policy instrument where the government allocates funds for various purposes such as public infrastructure, healthcare, education, defense, and social welfare. Government expenditure can stimulate economic activity, create jobs, and influence specific sectors of the economy.
Money supply: Controlling the money supply is a policy instrument typically used by central banks to manage monetary policy. By adjusting interest rates, implementing open market operations, or setting reserve requirements, central banks can influence the availability and cost of money in the economy. These actions impact borrowing costs, inflation, and economic activity.
Policy instruments are tools used by policymakers to achieve specific economic goals, such as managing inflation, promoting economic growth, or addressing income inequality. Each instrument has its own implications and can be utilized independently or in combination to shape economic policies and outcomes.
In summary, taxes, government expenditure, and money supply are all examples of policy instruments that governments and central banks use to influence and manage various aspects of the economy.
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Goods or services are limited after a natural disaster or during times of war. Which economy can be described as the best type to serve its citizens when taking scarcity into account?
Answers
In a command economy, the government has complete control over the allocation of resources and the production of goods and services. This allows the government to quickly mobilize resources and direct them towards the areas that are most in need during times of scarcity, such as natural disasters or war.
In contrast, a market economy, where resources are allocated based on supply and demand, may struggle to efficiently allocate resources during times of scarcity, as the price mechanism may not accurately reflect the true value of goods and services in such situations.
Therefore, a command economy can be described as the best type of economy to serve its citizens during times of scarcity, such as natural disasters or war, as it allows for efficient allocation of resources and quick response to the needs of the people.
After Mario completes his monthly report, his boss reviews it to see if the standards were met. If there are errors, Mario is told he has to work an extra hour each day for the next two weeks. This is an example of which type of management. Passive management by exception Active management by transaction Passive management by transaction Active management by exception
Answers
Answer: Active management by exception
Explanation:
Active management-by-exception is an active transactional leadership behavior whereby the leader looks out for what has been done wrong by his or her subordinates.
Such leaders monitors the work performance and look out for the mistakes and then corrects the situation by taking a particular action.
Since Mario'd boss reviews his monthly reports to see if the standards were met and that if there are errors, Mario is told he has to work an extra hour each day for the next two weeks. It is an example of Active management by exception
What is a "closing balance?
a.) The amountof money you have at the end of the statement period
b.)The amount of money you have when you close your account
c.)The amount of money you owe at the end of the statement period
d.)The amount of money waiting to be transferred out of your account
Faster pls
Answers
Answer:
The answer is A
Explanation:
A closing balance is the amount of money a business has at the end of a specific time period.
payment continues to represent a barrier to widespread adoption of the sharing economy, since many consumers feel uncomfortable exchanging cash or financial information with strangers.
a. True
b. False
Answers
payment continues to represent a barrier to widespread adoption of the sharing economy, since many consumers feel uncomfortable exchanging cash or financial information with strangers is false.
A community-based online platform is frequently used to facilitate peer-to-peer (P2P) based activities of acquiring, providing, or sharing access to goods and services, which are defined as part of the sharing economy.
For thousands of years, people in communities shared resources, but with the development of the Internet and its application of big data, it has become simpler for asset owners and those looking to use those resources to connect with one another. The term "shareconomy" or "collaborative economy" can also be used to describe this type of dynamic.
People and organizations can profit from underutilized assets in sharing economies.
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If you were Marshall’s manager how might you increase Marshall’s awareness of the negative impact he is having on his team?
Answers
As Marshall's manager, I would increase his awareness of the negative impact he is having on his team by providing specific and constructive feedback on his behavior and its consequences. This would involve having open and honest conversations with Marshall, highlighting examples of how his actions are affecting team morale, productivity, and collaboration.
In order to effectively address Marshall's negative impact on his team, it is important to approach the situation with clarity and professionalism. By providing specific examples of incidents where Marshall's behavior has caused harm, I can help him understand the direct consequences of his actions. This feedback should be delivered in a constructive manner, focusing on the behaviors rather than attacking his character.
By emphasizing the impact on team dynamics, performance, and overall work environment, Marshall can begin to see the need for change. Additionally, it would be beneficial to discuss alternative approaches and provide guidance on how he can improve his interactions with the team. Ongoing feedback and support from me as his manager can help Marshall recognize the negative impact he is having and encourage him to take steps towards positive change.
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WBS for the knowledge area of Human/Resource Management for a low-cost housing project
Answers
Here's an example of a WBS for the knowledge area of Human/Resource Management for a low-cost housing project:
The wbs for a knowledge area of Human/Resource Management for a low-cost housing projectHuman/Resource Management
1.1 Staffing Plan
1.1.1 Define project roles and responsibilities
1.1.2 Identify required staffing resources
1.1.3 Determine the project team structure
1.1.4 Develop a staffing plan and budget
1.2 Recruitment and Selection
1.2.1 Create job descriptions and specifications
1.2.2 Advertise and promote job openings
1.2.3 Review resumes and conduct initial screenings
1.2.4 Conduct interviews and select candidates
1.2.5 Perform background checks and reference checks
1.2.6 Extend job offers and negotiate terms
1.3 Training and Development
1.3.1 Assess training needs for project team members
1.3.2 Develop a training plan and schedule
1.3.3 Conduct training sessions and workshops
1.3.4 Provide on-the-job training and mentoring
1.3.5 Evaluate training effectiveness and adjust as needed
1.4 Performance Management
1.4.1 Set performance expectations and goals
1.4.2 Monitor and assess individual and team performance
1.4.3 Provide feedback and coaching to improve performance
1.4.4 Conduct performance appraisals and evaluations
1.4.5 Identify and address performance issues or conflicts
1.5 Resource Allocation
1.5.1 Identify project resource requirements
1.5.2 Allocate resources based on project needs
1.5.3 Monitor resource utilization and availability
1.5.4 Optimize resource allocation to meet project objectives
1.6 Stakeholder Management
1.6.1 Identify project stakeholders and their interests
1.6.2 Develop a stakeholder engagement plan
1.6.3 Communicate and manage stakeholder expectations
1.6.4 Address stakeholder concerns and resolve conflicts
1.6.5 Maintain positive relationships with stakeholders
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The language used in texting is acceptable in business writing. True or false
Answers
Answer: The answer is generally false.
how might a business be in violation of a truth in advertising law?
Answers
Answer:
By claiming its product is healthy without having any scientific evidence
Assume General Motors announced a quarterly profit of $119 million for 4th quarter 2019. Below is a portion of its balance sheet. Conduct a horizontal analysis of the following line items. (Negative answers should be indicated by a minus sign. Round the "percent" answers to the nearest hundredth percent.)
Answers
The horizontal analysis of General Motors' balance sheet shows that:
2019 2018 Difference %Change
Cash and cash equivalent $16,680 $15,849 $831 5.24%
Marketable securities $9,572 $16,848 $(7,276) -43.19%
Inventories $13,992 $15,024 $(1,032) -6.87%
Goodwill $0 $1,292 $(1,292) -100%
Total liabilities & equities $103,949 $144,953 $(41,004) -28.29%
Horizontal analysis is a financial analysis used to evaluate a company's performance over time by comparing each financial results between the current period and the year before. Horizontal analysis allows company to directly notice any changes happen in each account of its balance sheet and the magnitude of changes that has occured. Horizontal analysis provides a company with historical trends data.
Please refer to the table attached below for more proper data table.
Based on the data we have, we can fill the different coloumn with the gap between the amount of each account in 2019 and the amount of the same account in 2018.
Difference = amount in 2019 - amount in 2018
After finding the differences for each account, we can calculate the percentage of change (%change) by comparing it to the amount of the same account in 2018, using this formula:
%change = difference / amount in 2018
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The political candidates keep talking to the citizens about the possibility of a recession what would most likely happen if a country experience a recession
Answers
The thing that would MOST likely happen in this case if a country experiences a recession is D.Businesses will suffer from decreased sales and profits, eventually leading to closure
What is recession ?Recession, in economics, can be described as the downward trend in the business cycle.
Itshouldbe nopted that this can be seen as the decline in production and employment, whereby the incomes and spending of households to decline and as a result of thisthere would be hunger sa well as hardship in the country for this cause.
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missig part
What would MOST likely happen if a country experiences a recession?
A.
Feeling confident in the economy, people will begin to spend money more freely.
B.
Jobs will be more plentiful, and companies will be doing a lot of hiring.
C.
Families will start to purchase larger and more expensive homes.
D.
Businesses will suffer from decreased sales and profits, eventually leading to
Which of the following will increase the waiting time in a call center in which the incoming call gets assigned to the first available server?A. Add more serversB. Implement the shortest processing time first priority ruleC. Decrease the variability in serversD. Increase the average service/processing timeE. Decrease the interarrival timeBoth C and DBoth D and EC, D, and E
Answers
The incoming call gets assigned to the first available server the correct answer is Options C, D, and E.
What is assigned?Assigned is a term used to describe the action of assigning a task, responsibility, or duty to a person or group. It is often used in the context of school work, work assignments, and other tasks requiring completion. Assigning can also refer to the act of assigning a value (such as a monetary value) to something. For example, assigning a dollar value to a piece of property.
Adding more servers (Option A) will decrease the waiting time in a call center. Implementing the shortest processing time first priority rule (Option B) may reduce the waiting time, but it will also increase the variability in server times and can lead to an increase in waiting time. Decreasing the variability in server times (Option C) will reduce the waiting time and make it more consistent. Increasing the average service/processing time (Option D) will increase the waiting time. Decreasing the interarrival time (Option E) will reduce the waiting time.
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List the four responsibilities businesses have to customers.
Answers
Answer:
good luck bro you got this
Explanation:
to provide after-sale service on the basis of the nature of a product
to provide information about the changes introduced by the business
to take necessary steps to improve quality, reduce price and develop the network for distribution
to supply better quality goods at the right time at a reasonable price
Recall that an exchange rate is the price of one currency in another. For example, it may take US $1.35 to buy 1 British Pound. Also recall the interest rates affect exchange rates. What do you predict will happen to the foreign exchange rate if interest rates in the United States increase more than in the UK? (In other words, which currency will become stronger?) How would such a change affect US exports to the UK? Would it be less expensive for an American tourist to take a vacation to London after the interest rate change? Be sure to clearly explain and justify your reasoning.
Answers
Answer:
Exchange Rate and Interest Rate
1. If interest rates in the United States increase more than in the UK, the exchange rate of the US dollars will increase relative to the UK pounds, thus causing the UK pounds to become stronger than the US dollars.
2. US exports to the UK would become cheaper in UK.
3. It would be more expensive for an American tourist to take a vacation to London after the interest rate change because they would need more money to handle the differences.
Explanation:
Generally, higher interest rates in an economy offer investors some higher returns when compared to other countries. These higher interest rates attract foreign capital and cause the exchange rate to rise. When this happens, the cost of goods and services in the country with the higher interest and exchange rates. The opposite becomes the case when the interest and exchange rates are lower relative to other countries.
If interest rates in the United States increase more than in the UK, the United states currency would become stronger or appreciate against the British Pound.
As a result of the increase in the value of the US currency, export to the UK would decline because export would become more expensive. It would be less expensive for American tourist to take a vacation to London.
Exchange rate is the rate at which one currency is exchanged for another currency.
If interest rates in the United States increase more than in the UK, there would be an increase in foreign investments in the US. As a result, the demand for the dollar would increase and this would lead to an appreciation of the dollar against the GBP.
As a result of the appreciation of the dollar, export goods to the UK becomes more expensive and imports to the US from the UK becomes cheaper.
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A free enterprise system provides individuals the opportunity to make their own economic decisions, without restrictions from the government. It allows the supply and demand of consumers to determine the success or failure of an economic endeavor. As a result, some business owners have become successful, while others have not.
In an essay, you will choose an entrepreneur and argue whether the free enterprise system was necessary for that individual to make an impact on the business world.
Answers
The entrepreneur that is chosen for this argument is Steve Jobs. Steve Jobs was one of the co-founders of Apple, which is now a trillion-dollar company.
The free enterprise system was necessary for Steve Jobs to make an impact on the business world. Steve Jobs did not come from a wealthy background, but he had a passion for technology. The free enterprise system allowed him to start a business without any restrictions from the government.
He was able to create innovative products, such as the iPhone and iPad, and sell them to consumers. The supply and demand of consumers determined the success or failure of his business endeavors. Steve Jobs was able to create a successful company and become a billionaire because of the free enterprise system.
Without the free enterprise system, Steve Jobs may not have been able to start a successful business and make an impact on the business world.
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Reggie, who is 55, had AGI of $35,200 in 2022. During the year, he paid the following medical expenses:
Drugs (prescribed by physicians)
Marijuana (prescribed by physicians)
Health insurance premiums-after taxes
Doctors' fees
Eyeglasses
Over-the-counter drugs
$ 570
1,470
1,280
1,320
445
270
Required:
Reggie received $570 in 2022 for a portion of the doctors' fees from his insurance. What is Reggie's medical expense deduction?
Answers
Reggie's medical expense deduction is $7,276.
AGI, or adjusted gross income, is a person's total income minus certain deductions and is used to calculate taxable income.
Reggie, who is 55 years old, had an AGI of $35,200 in 2022. During the year, he incurred the following medical expenses:
Drugs (prescribed by physicians): $5,701
Marijuana (prescribed by physicians): $1,470
Health insurance premiums-after taxes: $1,280
Doctors' fees: $1,320
Eyeglasses: $445
Over-the-counter drugs: $270
Reggie was reimbursed $570 by his insurance company for a portion of the doctors' fees. To calculate his medical expense deduction, we first need to subtract any reimbursements from his total medical expenses.
Total medical expenses: $5,701 + $1,470 + $1,280 + $1,320 + $445 + $270 = $10,486
Reimbursements: $570
Medical expenses after reimbursements: $10,486 - $570 = $9,916
To claim a medical expense deduction, the expenses must exceed a certain percentage of AGI, which varies depending on the taxpayer's age. For taxpayers who are 65 or younger, the threshold is 7.5% of AGI. For taxpayers who are over 65, the threshold is 7%.
Since Reggie is 55 years old, the threshold is 7.5% of his AGI or $35,200 x 0.075 = $2,640.
Therefore, Reggie can deduct the portion of his medical expenses that exceed $2,640.
Amount of medical expenses that exceed the threshold: $9,916 - $2,640 = $7,276
Therefore, Reggie's medical expense deduction is $7,276.
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A promissory note can best be described as __________., a. an interest-bearing IOU, b. a guarantee of a line of credit, c. a commitment to lend money to someone, d. a government-backed bond
Answers
A promissory note can best be described as: a. an interest-bearing IOU.
What is promissory note?Promissory note can be defined as a written note that help to shows that a person who lend a money from another person promise to payback. The note contains a promise by the borrower to pay back the lender within a stipulated period of time.
A promissory note can tend to be described as IOU which full meaning is I OWE YOU which implies that a borrower is telling the lender that he/she owe the lender some certain amount of money which the borrower will have to payback.
A promissory note also contains the terms and conditions of the agreement and this terms and agreement includes the following :
The principal amountThe loan maturity dateThe interest etcTherefore we can conclude that the correct option is A.
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You decide to decrease the price of your product to increase total sales revenue, because you believe your product's demand is
A) perfectly inelastic
B) unit elastic
C) price elastic
D) price inelastic
Answers
Answer:
C) price elastic.
Explanation:
Search to find any summary about the company that mentions funds for starting the business.
Look to see what kinds of products or services will be involved with the business.
Step 2. Search to find any summary about the company that mentions funds for starting the business. Try to find any information containing employee data in this section. Step 3. Find the section where the product or service is detailed. Look to see what kinds of products or services will be involved with the business. Compare this with what other similar business plans are offering.
Record the information you found for steps 2 and 3. Make sure you discuss how the company got money to start the business, employee data, and what products or services the company provides in comparison with what other similar business plans are offering.
Answers
After conducting research on the internet, a summary about a company that mentions funds for starting the business, employee data, and products or services that the company provides compared to other similar business plans has been found.
The company’s name is K-12 Business Education Services and they specialize in providing online business courses to K-12 schools. Their courses are designed to help students learn about business principles such as marketing, finance, accounting, and entrepreneurship. The company’s business plan indicates that they have received funding from several sources including angel investors, venture capitalists, and bank loans. They also have a team of experienced employees who have been in the business education industry for many years. According to the company’s website, they offer a wide range of courses that are designed to be engaging and interactive. Students can learn at their own pace and can complete their coursework from anywhere with an internet connection. The courses are also designed to be affordable, which makes them accessible to a wider range of students. In comparison to other similar business plans, K-12 Business Education Services is unique in that they offer a comprehensive range of courses that are designed specifically for K-12 students. Other similar business plans tend to focus on providing courses for adult learners or students who are already enrolled in college. Additionally, K-12 Business Education Services has received funding from several sources, which indicates that they are a promising start-up that has the potential to grow and expand in the future.For such more question on entrepreneurship
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which of the following is an example of an executive agreement?
The president changes a regulation on undocumented immigrant status without congressional approval.
The president signs legally binding nuclear arms terms with Iran without seeking congressional approval.
The president issues recommendations to the Department of Justice on what the meaning of a new criminal statue is.
The president negotiates an agreement with China and submits it to the Senate for ratification
Answers
The Correct example of an executive agreement is b) The president signs legally binding nuclear arms terms with Iran without seeking congressional approval.
What is Executive Agreement?An executive agreement is a pact between the leaders of two or more countries that has not been approved by the legislature in the same way that treaties are approved. To distinguish them from treaties, which are legally binding, executive agreements are seen as having political force.Executive agreements are less formal than treaties and do not require ratification by two-thirds of the U.S. Senate. They are agreements between the United States and a foreign government.After 1939, executive agreements were used a lot more frequently. Between 1940 and 1989, during World War II and the Cold War, presidents signed almost 800 treaties but negotiated more than 1,200 executive agreements, compared to the 800 treaties that the U.S. Senate had ratified before to 1940 and the 1,200 executive agreements that they had formed.To learn more about Executive agreement refer to:
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Who could benefit from these price controls?
Answers
Answer:
Consumers and the government could benefit from price controls.
Explanation:
Edmentum/Plato
Charhofe ended 2019 with a balance in their interest payable account of $14 million. During 2019 it paid $9 million in interest to its creditors. What was the balance of the interest payable account at the end of 2018?
Answers
$23 million was the balance of the interest payable account at the end of 2018.
What is interest payable journal entry?Interest Payable is the amount of expense incurred but not paid as of today. If interest is accrued after the date the interest payable is registered on the balance sheet, it is not considered.
Given
interest payable account balance in 2019 = $14
Payment made during year = $9
Required to Calculate interest payable account at the end of 2018 =?
interest payable account 2018 = $14 + $9 =$23
Thus, the $23 million was the interest payment account in 2018. Interest Payable is a balance-sheet liability account that represents the number of financing costs that have accrued but have not been paid as of the balance sheet date. In a nutshell, it represents the amount of interest owed to lenders at the time.
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Vanya inc. charter authorizes 1000 shares of stock at a stated value of $1 per share. Vanya sells 50 shares of stock at its initial offering for $10 [er share. The journal entry to record this transaction?
Answers
Credit for Paid-In Capital, in Surplus of Stated Worth for $450, $50 toward Common Stock, and $500 toward Cash.
Why do you use the term "Common Stock"?A form of business equity and a kind of security is common stock. Within the borders of the United States, the words vote share and common share are widely used. In the UK as well as other Commonwealth nations, they are referred to as share capital or ordinary shares. A investor holds 1% of the company if they hold shares of a company of the ordinary stock. This investor will receive $100 (1,000 units X $0.10) in dividends if the company declares a $0.10 per share dividend.
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Q1. A manufacturing firm has discontinued production of a certain unprofitable product
line. This created considerable excess production capacity. Management is considering to
devote this excess capacity to one or more of three product 1,2 and 3. The available capacity
on the machines which might limit output are given below:
Machine type Available time
(in machine hours per week)
Milling
machine
250
Lathe 150
Grinder 50
The number of machine hours required for each units of the respective product is given
below;
Machine type Productivity (in machine hours/unit)
Product 1 Product 2 Product 3
Milling 8 2 3
Lathe 4 3 0
Grinder 2 0 1
The unit profit would be 20 birr, 6 birr and 8 birr for products 1,2 and 3. Find how much of
each product the firm should produce in order to maximise profit ? Solve the problem by
simplex method.
Answers
The simplex method is a linear programming technique used to find the maximum value of a linear objective function subject to constraints represented by linear equations or inequalities.
How do we use this method?Here's how you can solve this problem using the simplex method:
Formulate the problem as a linear program:
The objective is to maximize the total profit, which is given by 20x1 + 6x2 + 8x3, where x1, x2, and x3 are the number of units of products 1, 2, and 3, respectively. The constraints are the available machine time, which are:
8x1 + 4x2 + 2x3 <= 250 (milling machine)
3x1 + 3x2 <= 150 (lathe)
x3 <= 50 (grinder)
Create a simplex tableau:
The simplex tableau is a matrix used to keep track of the variables and the coefficients of the objective function and the constraints. The first row of the tableau is the objective function, the rest of the rows are the constraints. The last column is called the "result" column and contains the values of the variables and the objective function.
Choose a basic variable:
In the first iteration, we will choose x1 as the basic variable, since it is the only non-negative variable in the objective function. We will write x1 in terms of x2 and x3 using the first constraint:
x1 = (250 - 4x2 - 2x3)/8
Update the simplex tableau:
Substitute x1 in the objective function and in the rest of the constraints:
20 * (250 - 4x2 - 2x3)/8 + 6x2 + 8x3
3x2 <= 150
x3 <= 50
Check for optimality:
Check if all the coefficients in the objective function are non-negative. If so, the current solution is optimal and the problem is solved. If not, choose the next basic variable and repeat steps 3 and 4.
Repeat steps 3 to 5 until optimality is reached:
In the second iteration, we will choose x2 as the basic variable. Substitute x2 in the objective function and in the rest of the constraints, and check for optimality. Repeat this process until the coefficients in the objective function are non-negative, indicating that the solution is optimal.
The final solution will give the number of units of each product that the firm should produce in order to maximize profit.
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Monisha Consumer Goods' is a leading consumer goods chain with a
network of 46 stores primarily across Mumbai, Delhi and Pune. It was
started by Monisha Gupta in 1987. It has a large market share in Mumbai.
Delhi and Pune, Looking for an opportunity to expand, it has decided to
open a new branch in Kerala. It has to decide on what new resources it
will invest in so that it is able to earn the highest possible return for its
investors. Once the company believes that it will be able to generate higher
revenue and profits, it also has to decide on how this project will get funded.
The finance manager Atul was told to have an optimal capital structure by
striking a balance between various sources of getting the project funded
so as to increases shareholders' wealth. Atul, after assessing the cash
flow position of the company, evaluated the cost of different sources of
finance and compared the risk associated with each source as well as the
cost of raising funds.
(a) State the two financial decisions discussed in the above situation.
(b) Explain any two financial decisions discussed in the above situation.
Answers
Financial choices are taken:
1. In what novel resource should one choose to make an investment in order to get the highest potential returns, i.e. profit?
2. The manner in which the project will be financed
Where to place one's money?When you make a decision to invest in a new venture or formulate a plan for growth, it is imperative that you take into account all of the resources that will be necessary, such as the workforce, capital, machines, and knowledge that will be needed, as well as how to make the most efficient use of these resources.
How exactly will it be paid for?The response to this inquiry calls for an understanding of a specialized subject. It depends on the choice that was made on the source of obtaining the essential resources, such as banks, and financial institutions, raising share capital, issuing debentures, obtaining a loan from a friend, making a public deposit, investing abroad, and so on.
This is further explained below.
What are financial decisions?Generally, When we talk about "financing decisions," we're referring to the choices that businesses need to make on the mix of equity and debt capital that should make up their overall capital structure.
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PLS HURRY I AM ON A TIMER! what types of people can you learn from on Twitter?
A.Only professors
B.Only industry experts
C.Only fellow students
D.Anyone interested in the topic
Answers
Answer:
D.Anyone interested in the topic
Explanation: hope this helps
Sheridan Company produces a product that requires 2.6 pounds of materials per unit. The allowance for waste and spoilage per unit is 0.3 pounds and 0.1 pounds, respectively. The purchase price is $2 per pound, but a 2% discount is usually taken. Freight costs are $0.10 per pound, and receiving and handling costs are $0.07 per pound. The hourly wage rate is $12.00 per hour, but a raise which will average $0.30 will go into effect soon. Payroll taxes are $1.20 per hour, and fringe benefits average $2.40 per hour. Standard production time is 0.5 hour per unit, and the allowance for rest periods and setup is 0.5 hours and 0.4 hours, respectively. The standard direct labor hours per unit is
Answers
Answer:
$15.90
Explanation:
Standard direct labor rate per hour = Hourly wage rate per hour + Average raise in the hourly wage rate + Payroll taxes per hour + Fringe benefits per hour
Standard direct labor rate per hour = $12.00 + $0.30 + $1.20 + $2.40
Standard direct labor rate per hour = $15.90
Buying land with the anticipation of it going up in value is an example of:
Answers
Buying land with the anticipation of it going up in value is an example of Principle of anticipation.
What is principle of anticipation?The Principle of anticipation perceive the value that a product by creating an expectation of the future benefits that will be derived from such product's.
A products is purchased to keep in anticipation that there will be more value added to it in Future.
Therefore, Buying land with the anticipation of it going up in value is an example of Principle of anticipation.
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